Topic: If I sell my bitcoins do I have to pay vat on them ? - page 3. (Read 6680 times)
I think you are subject to capital gains tax in Europe. In some countries, you are exempt from capital gains tax when you hold the asset for more than 5 years.
If you are talking about capital gains taxes, then it depends on your country and how long you've owned the coins.
UK, for example, gains are taxed as income but not until the first £10,400. So unless you have more than that it gains, you don't have anything to report or pay. Germany taxes short-term gains, but anything over a year is exempt.
For VAT, if you sell something, you don't pay VAT you charge it. VAT is a tax added onto the price a consumer pays when purchasing from a VAT registered business. It is a pass-through tax that eventually goes to the government.
As an individual, you aren't VAT registered, and even if you were by running a business you still don't pay VAT on selling item, your buyers would pay it.
The whole "do Bitcoins sales incur VAT" question is currently being questioned in the EU courts (see http://www.bitcoin.se/2014/12/06/update-on-vat-case-in-eu-court-of-justice/) so we'll have to wait and see.
UK, for example, gains are taxed as income but not until the first £10,400. So unless you have more than that it gains, you don't have anything to report or pay. Germany taxes short-term gains, but anything over a year is exempt.
For VAT, if you sell something, you don't pay VAT you charge it. VAT is a tax added onto the price a consumer pays when purchasing from a VAT registered business. It is a pass-through tax that eventually goes to the government.
As an individual, you aren't VAT registered, and even if you were by running a business you still don't pay VAT on selling item, your buyers would pay it.
The whole "do Bitcoins sales incur VAT" question is currently being questioned in the EU courts (see http://www.bitcoin.se/2014/12/06/update-on-vat-case-in-eu-court-of-justice/) so we'll have to wait and see.
I live in europe. There are two taxes vat and income tax. About the income tax thats not a problem its obvious to pay it when you receive any sum of money given that you jump the quota. But vat I am not sure what I understand business pay vat when they sell a service or goods but if you sell your bitcoins does it fall under this catagory and need to declare it to vat department ?
Where do you live? I suspect Europe? In the US we have to pay capitol gains tax on the gain in value. But value added taxes are different and depends on your country.
If i sell my bitcoins to a site like coinbase at the end of the year do I need to declare that sale to the vat department and pay the 20% on what i received from coinbase ?
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